Software Outsourcing in Vietnam: A Case Study of a Locally Operating Pioneer

This paper explores the following question of key interest to researchers and practitioners concerned with offshore IS outsourcing in developing countries: How are potential offshore partners operating in developing nations to mature to be considered more attractive to suitors? Indeed, for firms located in what Carmel (2003) refers to as Tier Four, or less developed IS producing and exporting nations, an advancement to become a strategic partner challenges conventional wisdom and theoretical expectations. However our work has identified a firm that has become a strategic partner despite being headquartered in a Tier Four country. In exploring this question and examining our exemplar firm, the paper makes three key contributions: First, the contemporary context for offshore outsourcing in a Tier Four nation (Vietnam) is explored, illustrating the nation's advantages as well as key challenges that limit expansion. Second, against this backdrop we offer a case study of a successful strategic partner that has emerged despite being headquartered in a Tier Four nation. A theory‐grounded analysis of the firm, Glass Egg Digital Media, provides a lens for identifying success factors that enable firms in developing nations to emerge as strategic technology outsourcing partners. Finally, we end by exploring how existing models for considering firm attitudes toward offshore outsourcing can be expanded and we highlight potential areas for future research. Our work demonstrates the important interplay of firm, industry, and national factors in enabling a firm operating in a Tier‐Four nation to make the leap to strategic partner.